59 CORPORATE GOVERNANCE Sustainability Report (Cont’d) The Board oversees the Group's sustainability strategy, focusing on climate-related aspects such as decisionmaking, risk and opportunity assessment, and high-level policy progress. A specific concern for the Board is the inclusion of climate change and its business implications as a material topic for ENRA, discussed and approved during their deliberations. The ARMSC, delegated by the Board, is responsible for reviewing and regularly updating the Group's sustainability strategy and plans. Climate Change-Risks and Opportunities RISKS OPPOTUNITIES ENERGY LOGISTICS DIVISION Increased frequency and intensity of hurricanes, typhoons, and storms could lead to damage or loss of vessel and SPM facilities. This could lead to increase in maintenance costs and potential safety hazards. Changes in sea temperature can affect the efficiency of cooling systems and impact equipment performance. Stringent regulations aimed at reducing carbon emissions could increase operational costs. Development of advanced technologies for climate resilience in FSO design and operation to improve safety, increase efficiency and reduce environmental impact. Implement energy efficiency measures to optimise cooling system performance, considering variations in sea temperatures. Explore the implementation of carbon capture and storage (CCS) technologies to capture and store carbon emissions from FSO operations. PROPERTY DEVELOPMENT DIVISION Increased temperatures may necessitate changes to planning and design, resulting in higher development costs. Increased damages and liabilities from ongoing developments that are potentially affected by climate change-related natural disasters. Development of sustainable construction methods and designs for long-term feasibility, all of which reduces overall impacts on the climate. Greater acceptance for use of environmentally friendly design, materials and features within property development. MRO SERVICES DIVISION Extreme weather events, such as storms, floods, or heatwaves, can cause significant disruptions to operations. Facilities may suffer damage, and the supply chain could be interrupted, impacting service delivery timelines and costs. As governments worldwide impose stricter environmental regulations to combat climate change, MRO companies may face challenges in compliance, requiring investments in cleaner technologies or processes and navigating a complex landscape of carbon taxes or emissions trading schemes. Climate change can lead to scarcity of critical materials and resources, driving up costs. For instance, water stress could affect operations that rely on water-based processes, and changes in global temperatures could impact the availability of certain materials. Growing demand for more environmentally friendly and energy-efficient solutions. This can be capitalised on this by offering services that help clients reduce their carbon footprint, such as retrofitting older equipment to improve efficiency or reduce emissions. Climate change drives innovation in materials, technologies, and processes. MRO companies can develop new services and products that address climate-related challenges, opening up new markets and customer segments. By adopting more sustainable practices, such as waste reduction, energy efficiency, and lean manufacturing, MRO companies can achieve operational efficiencies that reduce costs and improve competitiveness.
RkJQdWJsaXNoZXIy NDgzMzc=